Suntory Beverage & Food Limited (SBF) announced that Suntory Beverage & Food Limited Asia Pte (SBFA), maker of Ribena and Lucozade, has agreed to sell its Nigerian subsidiary, Suntory Beverage & Food Nigeria (SBFN), to Africa FMCG Distribution Ltd (AFDL) for a total consideration of $14 million.
The transaction, which is expected to close in the second quarter of 2022, subject to regulatory approval, will result in the transfer of all of the soft drink manufacturer’s shares to AFDL and loan receivables held by SBFA against SBFN. In addition, SBFA has entered into a license agreement with AFDL for the exclusive right to manufacture and distribute the SBF, Lucozade and Ribena brands in Nigeria.
AFDL, is a subsidiary of Chanrai Summit Group, a multi-faceted company that distributes products such as branded food, consumer goods and home appliances and is expected to grow its business by leveraging its strong supply chain management infrastructure. The Indian-origin group has had operations in West Africa since 1900, in Ghana and Nigeria, in Dubai, India, and in Singapore.